| Performance by Division |
|
Half-Year
June 2000
Euro m |
Half-Year
June 1999
Euro m |
% Change
2000
v 1999 |
Year
1999
Euro m |
|
| AIB Bank |
|
323 |
270 |
20 |
585 |
| USA |
|
164 |
142 |
15 |
307 |
| Capital Markets |
|
90 |
80 |
12 |
151 |
| Poland |
|
43 |
23 |
82 |
63 |
|
| Group profits before disposals |
|
607 |
542 |
12 |
1,115 |
|
As stated in the 1999 annual accounts, the business segment analysis of profitability for the half-year to June 1999 has been restated in line with internal management accounts.
On a divisional basis the profit before taxation is measured in euro and consequently includes the impact of currency movements.
AIB Bank Retail and commercial banking operations in the Republic of Ireland, Northern Ireland, Britain, Channel Islands and the Isle of Man; AIB Finance and Leasing; Card Services; and AIB's life and pensions subsidiary Ark Life Assurance Company.
AIB Bank profit increased to Euro 323 million - a 20% increase over the same period last year, reflecting a strong performance in all business units.
| AIB Bank profit and loss account |
|
Half-Year
June 2000
Euro m |
Half-Year
June 1999
Euro m |
% Change
2000
v 1999 |
Year
1999
Euro m |
|
| Net interest income |
|
502 |
440 |
14 |
932 |
| Other income (incl. associates) |
|
243 |
199 |
22 |
422 |
|
| Total income |
|
745 |
639 |
17 |
1,354 |
| Total operating expenses |
|
394 |
348 |
13 |
724 |
|
| Operating profit before provisions (incl. associates) |
|
351 |
291 |
21 |
630 |
| Provisions |
|
28 |
21 |
35 |
45 |
|
| Profits before taxation |
|
323 |
270 |
20 |
585 |
|
Profit from retail banking activities in the Republic of Ireland rose by 24% reflecting a very buoyant market. Banking activities include Branch Banking, AIB Finance and Leasing and Card Services. AIB Bank's cost income ratio in the Republic of Ireland at 52% was down from 54% in 1999.
Branch Banking Republic of Ireland had a very good half-year with strong growth in business volumes reflecting the strength of the domestic economy and the power of the AIB franchise. Loans increased by 11% with growth in all sectors and customer accounts were up 5% since December 1999. The favourable impact of volume growth was partly offset by lower margins.
There was a 10% increase in Home Mortgage lending since December 1999. The business performance demonstrates our ability to compete successfully with new entrants to the market. Prudent criteria for loan approval continue to be applied, the average loan to value ratio for new business nationally was 55% while in Dublin the ratio was 51% in the half-year to June 2000.
AIB Finance and Leasing experienced very strong customer demand with loan growth of 20%. Key sectors performed well with significant growth in motor, commercial vehicles and equipment finance. Lending margins were lower in a most competitive market.
Card Services performed strongly, benefiting from increased cardholder spending and good growth in domestic and international merchant acquiring income. Cardholder balances increased by 3% since December 1999.
Ark Life reported profit growth of 32% to Euro 42 million for the half year to June 2000. There was significant growth in single pension products with sales of Euro 284 million, up 68% on the half-year to June 1999. New regular premium business amounted to Euro 57 million, an increase of 19% including growth of 79% in new regular pension business. Annual Premium Equivalent (APE) sales rose by 31% to Euro 86 million.
|
